Related papers: Financial heat machine
The dynamical behavior of a kind of models with hierarchically constrained dynamics is investigated. The models exhibit many properties resembling real structural glasses. In particular, we focus on the study of time-dependent temperature…
We start with the idea that open quantum systems can be used to represent financial markets by modelling events from the external environment and their impact on the market price. We show how to characterize distinct orbits of the time…
In this paper, I consider a simple heterogeneous agents model of a production economy with uncertain climate change and examine constrained efficient carbon taxation. If there are frictionless, complete financial markets, the simple model…
Mesoscopic thermoelectric heat engine is much anticipated as a device that allows us to utilize with high efficiency wasted heat inaccessible by conventional heat engines. However, the derivation of the heat current in this engine seems to…
Standard heat machines (engine, heat pump, refrigerator) are composed of a system ("working fluid") coupled to at least two equilibrium baths at different temperatures and periodically driven by an external device (piston or rotor) called…
The quantitative aspirations of economists and financial analysts have for many years been based on the belief that it should be possible to build models of economic systems - and financial markets in particular - that are as predictive as…
We propose an embedding of standard active particle models in terms of two-temperature processes. One temperature refers to an ambient thermal bath, and the other temperature effectively describes ``hot spots,'' i.e., systems with few…
We discuss the role of information entropy on the behaviour of random processes, and how this might take effect in the dynamics of financial market prices. We then go on to show how the Open Quantum Systems approach can be used as a more…
The dynamics of a single scalar field which describes a second order phase transition is considered taking into account the thermal effects in the high temperature limit. I conclude that thermal effects play a very important role during…
The thermodynamic formalism, which was first developed for dynamical systems and then applied to discrete Markov processes, turns out to be well suited for continuous time Markov processes as well, provided the definitions are interpreted…
We consider an out-of-equilibrium lattice model consisting of 2D discrete rotators, in contact with heat reservoirs at different temperatures. The equilibrium counterpart of such model, the clock-model, exhibits three phases; a…
The thermodynamic uncertainty relation expresses a universal trade-off between precision and entropy production, which applies in its original formulation to current observables in steady-state systems. We generalize this relation to…
The use of kinetic modelling based on partial differential equations for the dynamics of stock price formation in financial markets is briefly reviewed. The importance of behavioral aspects in market booms and crashes and the role of…
We develop a tractable macroeconomic model that captures dynamic behaviors across multiple timescales, including business cycles. The model is anchored in a dynamic capital demand framework reflecting an interactions-based process whereby…
From the thermodynamic equilibrium properties of a two-level system with variable energy-level gap $\Delta$, and a careful distinction between the Gibbs relation $dE = T dS + (E/\Delta) d\Delta$ and the energy balance equation $dE = \delta…
For 1D Hamiltonian systems with periodic solutions, Helmholtz formalism provides a tantalizing interpretation of classical thermodynamics, based on time integrals of purely mechanical quantities and without need of statistical description.…
The reheating process in inflationary universe models is considered as an out-of-equilibrium mixture of two interacting and reacting fluids, and studied within the framework of causal, irreversible thermodynamics. The evolution of the…
Many dynamical systems operate in a fluctuating environment. However, even in low-dimensional setups, transitions and bifurcations have not yet been fully understood. In this Letter we focus on crises, a sudden flooding of the phase space…
Despite much scientific evidence, a large fraction of the American public doubts that greenhouse gases are causing global warming. We present a simulation model as a computational test-bed for climate prediction markets. Traders adapt their…
We recall the similarities between the concepts and techniques of Thermodynamics and Roegenian Economics. The Phase Diagram for a Roegenian economic system highlights a triple point and a critical point, with related explanations. These…